Ditau Camp Project - Drilling Programme Update

RNS Number : 8541L

Power Metal Resources PLC

18 May 2022

 

18 May 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Ditau Camp Project - Drilling Programme Update

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update from the Ditau Camp Project ("Ditau" or the "Project") located in southwest Botswana. Ditau is considered prospective for carbonatite hosted rare-earth element ("REE"), base-metal and possible precious-metal mineralisation.

Ditau is held within a 50/50 Joint Venture ("Kanye Resources" or "Kanye") with London-listed Kavango Resources plc (LSE:KAV) ("Kavango"). Kavango is the operator.

DITDD004, the second hole in the Ditau drill programme has been successfully completed to a downhole depth of 389m.

DITDD004 was drilled into the i10 Target, a discrete 2.2km diameter magnetic anomaly that Kanye Resources had previously modelled as a possible carbonatite. DITDD004 appears to have intercepted the magnetic anomaly within the drillhole from 293m to 321m downhole depth.

Kanye Resource's field team has taken preliminary magnetic susceptibility readings on the core recovered from DITDD004. The field team recorded highly elevated magnetic susceptibility readings between 293m and 321m (the "Zone of Interest") - a combined 28m of core length. These readings from the Zone of Interest coincide with a visibly altered section that Kanye Resources will immediately cut half-core samples from and send to the assay laboratory for multi-element analysis.

The core from DITDD004 contains visible siliceous and haematitic zones, with local pervasive pyrite manifested both as disseminations and in veins. Extensive fracturing (brecciation) is observed throughout the Zone of Interest and elsewhere in the hole.

Power Metal has provided select core images from the Zone of Interest on its website:

https://www.powermetalresources.com/drill-update-ditdd004/

A 1km Audio-Magnetotelluric ("AMT") survey will be performed over the i10 Target in the coming weeks. Kanye Resources hopes that data from this will help further define the shape and form (morphology) of the Zone of Interest.

Mindea Exploration and Drilling Services Pty ("Mindea") will now mobilise the diamond core drill rig to Target i1 at Ditau. Target i1 is the largest of three geophysical targets Kanye Resources plans to drill during the current campaign. A further update will be released shortly in respect of this drillhole.

Paul Johnson, Chief Executive Officer of Power Metal Resources, commented: 

"The core extracted from hole DITDD004's Zone of interest, spanning a combined 28m, is fascinating from a geological perspective and we are eager to see the results from further analysis thereon - including laboratory multi-element assays.

The magnetic modelling undertaken to develop this target appears to be reliable, which is also particularly encouraging for DITDD004 and future drill holes within Ditau.

I look forward to reporting further plans and progress over the coming weeks ."

Operational Summary

-  DITDD004 is the second hole to target the i10 Target

-  The i10 Target is a discrete circular geophysical anomaly which is roughly 2.2km in diameter.

-  Kanye Resources has extensively modelled the i10 Target using various inversions of Aeromagnetic ("AEM") and AMT geophysical datasets.

-  Kalahari sediment thickness was determined to be 105m based on the first hole drilled (DITDD003) which is consistent with the estimated thickness based on the AMT modelling completed.

-  An additional 16.1 line-km of AMT geophysical surveying is now planned with coverage over multiple drill target areas including:

-  1.0 line-km over the i10 Target;

-  5.5 line-km over the i8 Target; and

-  9.6 line-km over the i1 Target.

The plan is to collect high-frequency AMT profiles over near-surface potential carbonatite targets with the ultimate goal of better resolving the location of breccia zones and intrusive sills/dykes intersected in drillhole DITDD003.

AMT surveys can aid geophysicists and geologists in mapping subsurface geological structures and layers; further identifying potential areas for mineralisation which allows for the refinement of drill targeting.

To date, Kanye Resources has identified 12 geophysical targets at the Ditau Project (i1 through i12), which are believed to be caused by possible carbonatites and/or intrusive complexes that may host carbonatites. Carbonatites account for the primary source of mined rare-earth elements; and REEs are vital component materials in many high-tech industries.

As part of the ongoing exploration programme, Kanye Resources is planning to drill test three geophysical targets (i10, i1 and i8).

GLOSSARY

Siliceous - Rich in silica, with reference to the geology at Ditau, this can be a sign of hydrothermal alteration.

Haematitic - A rock formed principally of iron oxide, often associated with hydrothermal alteration.

Pervasive - The replacement of most, if not all, of the original minerals in the rock by later alteration.

Dissemination - when an ore (or mineral) is present within a rock as small particles distributed uniformly throughout the rock.

Brecciation -  Texture formed of broken angular fragments of a rock, often signalling  intense hydrothermal alteration.

Intrusive Sill - Body of igneous rock forced horizontally into a rock.

Intrusive Dyke - Body of igneous rock forced vertically into a rock.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information please visit  https://www.powermetalresources.com/  or contact:

Power Metal Resources plc
Paul Johnson (Chief Executive Officer)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

NOTES TO EDITORS

Power Metal Resources PLC - Background

Power Metal Resources PLC (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

Project	Location	POW %	Work Completed or Underway	Results Awaited
Alamo Gold Project	USA	Earn-in to 75%	Excavation of multiple test pits and mapping & sampling.	Field and assay results from on-site work programme.
Athabasca Uranium	Canada	100%	Data compilation across uranium properties	Interpretation results from all Properties complete. Next steps upcoming.
Authier North Lithium	Canada	Earn-in to 100%	Soil & rock sampling completed	Technical Review of exploration results & define next exploration steps.
Ditau Project	Botswana	50%	Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements.	Field updates and receipt & review of laboratory assay results.
Kalahari Copper Belt	Botswana	50%	Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas	Field programme findings and defined drill targets for near term drilling.
Molopo Farms	Botswana	53%	Review of recent exploration findings.	Determine next exploration steps and action plan.
Haneti Project	Tanzania	35%	Diamond drill programme completed	Receipt & review of laboratory assay results.
Victoria Goldfields	Australia	49.9%	Diamond drill programme underway	Field updates and receipt & review of laboratory assay results.
Paterson Projects	Australia	83.33%	Wallal passive seismic and 2D seismic processing work programme completed. Review of historical data and target generation for Ripon Hills & Braeside West projects.	Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling.
Selta Project	Australia	83.33%	Field reconnaissance work complete, which included mapping and sampling.	Finalising data review from field programmes.

 

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